1. suppose LSA company ends 2020 with a retained earnings balance of 472,000 during the year the company recognized net income of 60,000 and paid dividends of 8000 calculate LSA retained earnings at the beginning of 2020

2. suppose your company requires a gross margin per unit of 35%. If your cost of inventory is $325 per unit calculate the minimum required selling price per unit.

3. Company A is raising funds now to conduct operating activities that are expected to increase the company’s net income next year. Instead of issuing stock for the funds, company A decides to issue bonds. How would company A’s ROE be expected to change by the end of next year?

Answer rating: 100% (QA)

1 LSA Retained Earnings Beginning Retained Earnings 472000 ending balance 60000 net income 8000 divi... View the full answer